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3w ago

Pentagon Bans Chinese Nationals From DoD Cloud Work, Orders Microsoft Audit

The decision follows revelations that Microsoft used China-based engineers under a 'digital escorts' model, prompting audits to check for possible code tampering.

U.S. Defense Secretary Pete Hegseth at the Oval Office of the White House in Washington, D.C., U.S., August 18, 2025. REUTERS/Kevin Lamarque/ File Photo
Hegseth: Chinese coders barred from Pentagon cloud systems
Department of Defense Secretary Pete Hegseth said "the use of Chinese nationals to service Department of Defense cloud environments, it's over." (KEVIN WOLF/AP)
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Overview

  • Defense Secretary Pete Hegseth issued a formal letter of concern to Microsoft citing a "breach of trust" and required a third-party audit of the digital escort program, including code and submissions by Chinese nationals.
  • A separate Defense Department investigation is underway to determine whether malware, backdoors, or other vulnerabilities were introduced into DoD cloud systems.
  • Hegseth directed all Department of Defense software vendors to identify and terminate any Chinese involvement in DoD systems going forward.
  • Microsoft says it has ended the use of China-based engineering teams for DoD cloud systems, will cooperate with reviews, and is conducting an audit at no cost to taxpayers.
  • The move follows ProPublica’s July reporting that exposed the decade-long practice and highlighted oversight gaps, with some Pentagon officials saying they were unaware of the arrangement.